MUNICIPAL TRADING.

New Zealand Herald, Volume LXV, Issue 19866, 9 February 1928, Page 7

MUNICIPAL TRADING.

PREFERENCE OVER LIENB*

COMPLAINT BY PRIVATE FIRM-

{"BY TELEGRAPH. —OWN CORRESPONDENT*^ CHHISTCHUKCH, Wednesday. Alleging that an Act of Parliament which gave municipal electricity departments or power boards preference over a lien was unjust and enabled them to undercut and under-quote private firms, a representative of a ChnstchurcL company wrote to the Christchurch Buildera' Association urging that it should unite with the Allied Trades Association and endeavour to have the Act repealed. The letter stated: "At a recent meeting of creditors in a builder's estate, during a discussion on liens an interesting point arose as to the position of the municipal electricity department? with regard to same, and we think the position disclosed, should be discussed both by builders and by the Allied Trades Association. Briefly the position was as follows: A certain builder became involved and called a meeting of his creditors, who ordered him to file a petition in bankruptcy, Whilft discussing the liens put in on his. last job' and also liens which could still : >o put in the representative of the Municipal Electricity Department announced that his department claimed preference, even ahead of liens, by an Act of Parliament, Viz., section 10 of the Christchurch Electrical Supply Empowering Act, 1913. On discussing the matter -with him at a later date the writer was informed that the buildei.- referred to had had three eleotric ranges, and if these were not paid for, even although the builder had sold the properties, the Municipal Electricity Department could, still claim payment from the buyers, and if not paid seize the ranges. The writer was also informed that, in" the case of power boards which have a trading department, they can claim preference under an Act of Parliament for goods supplied and work done, even- ahead of existing mortgages. Wo consider this discloses A grossly unfai? trading advantage held by the Mumcipa Electricity Department, and also power boards With trading departments and m the rase in point even- the will set practically nothing. In °?der to protect the Allied Building .Trades As** " alion hj" J&S<S. WO would suggest tnao r."' . Co^boJN=w» the repeal of these .el InU to municipal ° r The P letter l> was referml to Building Trades Association.